United States and Singapore Buddy Up on Tax Evasion
For those who are still not convinced that the United States is serious about tracking down tax dodgers who are trying to hide money in offshore accounts, here’s one more piece of evidence that might change your mind. In a deal announced last week, the country of Singapore says it has come to terms with the U.S. on an agreement to share information regarding overseas account holders.
Under the new deal, financial institutions in Singapore will now be able to report any information it has regarding U.S. account holders in the country. Those financial institutions will share the information with local tax authorities in Singapore, who will then turn that information over to the IRS. That means those institutions can avoid dealing directly with the IRS,
This deal is another move by U.S. tax authorities to crack down on anyone trying to avoid their tax bill. Banks and other institutions in Singapore, as well as many other countries in Asia and across the globe, are coming to terms with the IRS and agreeing to turn over financial records of U.S. account holders as part of the U.S.’s Foreign Account Tax Compliance Act (FATCA).
If these firms choose to ignore FATCA, the consequences can be costly. According to the terms of FATCA, any institution that does not comply could be stuck with a withholding fee of 30 percent on their U.S. investment income. They could also essentially be locked out of U.S. capital markets.
If you are still noncompliant then now may be the time to get some help. Call us today at GROCO at 1-877-CPA-2006, or contact us online.
Fashioning a Charitable Gift: Creative Ways of Giving
Fashioning a Charitable Gift: Creative Ways of Giving The idea of “planning” a gift to charity may not spring as readily to mind as investment or retirement planning. Yet there are many ways to give, and many kinds of gifts to consider, especially when your philanthropic impulse is strong. Initial steps Of course, the very…
Durable Power of Attorney: Manage with Care
Durable Power of Attorney: Manage with Care With over 35 million people age 65 and older, more and more families are grappling with the needs of their elderly parents. Care-giving arrangements may be necessary, involving some difficult choices and emotional upheaval. For children with parents of substantial means, there may be concerns that extend beyond…
Gifts to Grandchildren: Generation-Skipping Transfer Tax
Gifts to Grandchildren: Generation-Skipping Transfer Tax The federal government currently imposes three distinct taxes on the transfer of wealth. The first two limit the total amount of assets that a person can pass tax free to others in life or at death. The gift tax and/or the estate tax take a substantial portion of all…
Independent Retirement Account – Defined, What Are The Options?
Independent Retirement Account – Defined, What Are The Options? There are typically two types of beneficiaries for an Independent Retirement Account (IRA). A beneficiary can be either a spouse or non-spouse, and each group has different options and benefits to receiving money from an inherited IRA. INHERIT INDEPENDENT RETIREMENT ACCOUNT FROM SPOUSE If you inherit…